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Student Loans

1/30/2018

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What is a Loan?

​Money you borrow with interest that you need to pay back.

What are Student Loans?

A type of loan designed to help students pay for schooling and expenses related to schooling. ​

Two Types of Federal Student Loans

  1. *Subsidized: Do not accrue interest while you’re in school
  2. ​​Unsubsidized: Start accruing interest as soon as you borrow the money
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https://studentaid.ed.gov/sa/types/loans#types

Tips On How to Pay Off Student Loans Faster

  1. Paying down the principal of your loans faster lowers the amount in interest you'll pay over time. Start paying it off slowly while still in school. Pay off the principal, not the interest.
  2. Know which loans you should make prepayments on. Federal student loans allow you to make prepayments when you are still in school. You should pay off the unsubsidized student loans first. Loans from private lenders might penalize you.
  3. Live at home and save money.
  4. Refinance and get a new lower interest rate.
  5. Make more than the minimum payment.
  6. Do the math and calculate your payoff date.
  7. Take a job that offers forgiveness- some jobs offer forgiveness for part or all of your student loan debt.
  8. Take full advantage of tax deductions and credits, and take interest rate reductions.
  9. Avoid prepayment programs.
  10. Trim your budget and earn extra money.

Common Mistakes

  1. Failing to notify the loan servicer about changes in contact information.
  2. Not signing up for auto-debit.
  3. Choosing a repayment plan that is too long.
    1. Longer repayment terms lead to lower monthly payments. But, longer repayment terms also lead to more interest being paid over the life of the loan. Increasing the loan term on a 6.8% loan may cut the monthly payment by a third, but more than doubles the total interest paid over the life of the loan. Choose shorter repayment terms to save interest.
  4. Misunderstanding loan amortization and how interest accrues.
  5. Failing to claim the student loan interest deduction. Borrowers can deduct up to $2,500.
  6. Not considering the consequences of interest capitalization.
  7. Accelerating repayment of the wrong loan: pay off the loan with the highest interest.
  8. Counting on bankruptcy discharge. Federal and private student loans are almost impossible to discharge in bankruptcy. ​​

How to Avoid a Loan Scam

​1. Avoid Upfront Payments
2. Be Wary of Aggressive Sales Pitches
3. Don't Give Out Your Personal Info
​
4. Do Your Research
Report being scammed to the CFPB, the Federal Trade Commission (FTC) and your state attorney general's office.

Resources

Student Loan Refinancing and Consolidation Cheat Sheet
https://studentloanhero.com/student-loan-refinancing-cheat-sheet/?utm_source=automationemail&utm_medium=email&utm_campaign=refi-refiautomation&utm_content=ba-email1

Student Loans 101
https://myfedloan.org/borrowers/student-loans-101/

Is the Government Making Money off of Your Student Loans?
http://money.cnn.com/2016/08/04/pf/college/federal-student-loan-profit/index.html?iid=EL

Student Loan Basics
https://www.discover.com/student-loans/college-planning/loans-101.html

Don’t Be Fooled By Student Debt Relief Scams
http://money.cnn.com/2016/08/16/pf/college/student-debt-relief-scams/index.html?iid=EL
Student Loan Refinancing and Consolidation Cheat Sheet
https://studentloanhero.com/student-loan-refinancing-cheat-sheet/?utm_source=automationemail&utm_medium=email&utm_campaign=refi-refiautomation&utm_content=ba-email1

Student Loans 101
https://myfedloan.org/borrowers/student-loans-101/

Is the Government Making Money off of Your Student Loans?
http://money.cnn.com/2016/08/04/pf/college/federal-student-loan-profit/index.html?iid=EL

Student Loan Basics
https://www.discover.com/student-loans/college-planning/loans-101.html

Don’t Be Fooled By Student Debt Relief Scams
http://money.cnn.com/2016/08/16/pf/college/student-debt-relief-scams/index.html?iid=EL
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30 Behaviors That Will Make You Unstoppable

1/18/2018

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1. Don't think- know and act
2. Always be prepared so you have the freedom to act on instinct
3. Don't be motivated by money or anything external 
4. Never be satisfied 
5. Always be in control
6. Be true to yourself 
7. Never let off the pressure
8. Don't be afraid of the consequences of failure
9. Don't compete with others. Make them compete with you
10. Never stop learning
11. Success isn't tough- it only increases the pressure
12. Don't get crushed by success
13. Completely own it when you screw up
14. Let your work speak for itself
15. Always work on your mental strength
16. Confidence is your greatest asset
17. Surround yourself with people who remind you of the future, not the past
18. Let things go, but never forget
19. Have clear goals
20. Respond immediately, rather than analyzing or stalling
21. Choose simplicity over complication
22. Never be jealous or envious of someone else's accomplishments
23. Take the shot every time
24. Don't think and act 10x
25. Don't get caught up in the results of your success. Always remain focused on what got you those results: the work.
26. Set goals that far exceed your current capabilities
27. Make time for recovery and rejuvenation
28. Start before you're ready
29. If you need permission, you probably shouldn't do it
30. Don't make exceptions
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The 4 Fundamental Skills of All Investing

1/18/2018

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1. The ability to distinguish "temporarily out of favor" from "wrong". 
​
2. The willingness to adapt views you wish were permanent.

3. The ability to be comfortable being miserable.

4. The ability to distinguish when analytics vs. psychology is necessary.
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What the Best Investors do that Others Don't

1/18/2018

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whatthebestinvestorsdodifferently.pdf
File Size: 58 kb
File Type: pdf
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The 10 Commandments of Investing

1/18/2018

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  1. Thou shalt set clear goals
  2. Thou shalt put thy financial house in order
  3. Thou shalt question authority
  4. Thou Shalt not follow sheep
  5. Thou shalt be humble
  6. Thou shalt be patient
  7. Thou shalt show moderation
  8. Thou shaft not ogle thy investment
  9. Thou shalt not court or spurn risk
  10. Thou shalt not make heroes of mere men
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7 Different Types of Economics

1/17/2018

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Economics has become a religion. It runs the world and it creates wealth for many. Here are seven different types of economic theories:
Neoclassicists: Individuals as utility-maximizing algorithms; utility driven transactions.
Keynesians: How to prevent recessions from turning into depressions in the short run; a fall in aggregate demand must be reversed through increased investment.
Monetarists: Money supply should be the government's sole economic-policy tool and be used to maintain price stability through equilibrium of the money supply.
Rational Expectations: Disagrees with Keynesians and Monetarists. People make choices based on rational outlook, available information, and past experiences.
Austrian School Libertarians: The workings of the broad economy are the sum 0f smaller individual decisions and actions.
Empiricists: Evidence-based; use data.
Marxists: The specialization of the labor force coupled with a growing population, pushes wages down, and the value of goods and services does not accurately account for the true cost of labor.
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The 5 Biggest Bond Risks

1/8/2018

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Bonds are great conservative investments that offer lower, but more safe yields. But being more safe does not mean there is no risk. Here are five examples of bond risks:
Interest rates and bond prices carry an inverse relationship- As interest rates fall, the price of bonds generally rise and vice versa.
Reinvestment risk- Having to reinvest proceeds at a lower rate than the funds were previously earning.
Inflation risk- If inflation increases dramatically, investors will see their purchasing power erode and may actually achieve a negative rate of return.
Credit/Default risk- If the bonds (certificates of debt) are not repaid, then the investors lose their initial principle. Corporate bonds are not guaranteed by the full faith and credit of the US government. 
Liquidity risk- Risk that an investor might not be able to sell his corporate bonds quickly due to a thin market.
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    Author

    My name is Camden Alchanati and my goal is to teach you how to create a future of financial stability and growth! 

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